(661) 284-1150 | 28368 Constellation Road | Suite 398 | Santa Clarita, CA 91355

Home

fred kreger real estate lending news

Real Estate Lending News

  • Tax reform the big topic in this week’s Markets in a Minute!

     

    For the Week Ending November 10, 2017

    Tax Reform:

    All the talk as of late is the forthcoming tax plan to be released by the White House in the coming days. It seems that the like and dislike, for the most part, is split directly down party lines, However, there appears to be some Republicans in office that are struggling to support the proposed changes the way they are. The bottom line is almost every President, in as long as I can remember, has said they would reform the tax code. However, we have yet to see it,or even have any President come close to getting it passed. My feeling is that once again we will not see changes that are so badly needed, because there is no agreement on what they should be.

     

    Mortgage Rates and Applications:

    We have the trifecta of “1”’s this week. Purchase applications rose by a seasonally adjusted 1.0 percent for the week ending November 3rd. This is a slight reversal from the prior week’s minor decline of 1.0 percent. Refinancing declined only 1.0 percent as there was little movement in interest rates. Purchase applications are ahead of the same time last year by 9.0 percent. Overall purchase and refinance application activity is split almost even. Purchase loan applications represent 51.0  percent versus refinancing being at 49.0 percent.

     

    The Stock Market:

    With very little economic data being released this week, along with Friday’s Veteran’s Day Holiday, investors appear to be sitting on the sidelines. All of the major exchanges have been trading in a relatively narrow range. The stock market continues to hover near record highs, and for this week, there is little for investors to latch onto to make significant changes in strategy.

     

    Job Opening and Labor Turnover Report (JOLTS)

    With all of the job openings that supposedly exist, how is it that so many people in the workforce continue to struggle to locate better jobs, or receive significant pay increase where they work currently?

     

    The latest data for the month of September shows that job openings increased slightly to a very abundant 6.093 million. This is up over August’s revised 6.090 million. All of the other measurements related to this report show little to no change in the relationship between new hires, layoffs, quits, and discharges.

     

    Next week’s potential market moving reports are:

    • Tuesday November 14th – Producer Price Index
    • Wednesday November 15th – MBA Mortgage Applications, Consumer Price Index, Retail Sales
    • Thursday November 16th – First Time Jobless Claims, Industrial Production
    • Friday November 17th – Housing Starts

     

    As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way
    I possibly can.

     

    Please enjoy this quick update on what happened this week in the housing and financial markets.

     

     

    Traders continue to drive stocks to new heights and new records. However, concerns over the new tax reform plan going through have started to surface.
    The tax reform plan is expected to drive economic growth and corporate profits. If the plan doesn’t go through as anticipated, it could help interest rates.
    The labor market remains strong. Job openings posted by employers in September were steady from the prior month, a near record high.

     

    Rents have been increasing far faster than the pace of inflation. However, rising homeownership numbers could curb demand, slowing the increases.
    New applications for purchase mortgages increased 1% last week. That’s 9% higher year-over-year, as buyers seem less concerned about rates.
    The tax reform plan, as proposed, would lower the mortgage deduction on new purchases. There are lots of opinions of what effect, if any, it would have on
    sales.

    I was called into my manager’s office today because of my dress code. 

    He said, “You can’t wear pajamas for work.” 

    I said, “Everyone else does.” 

    He said, “That’s because they’re patients.”

     

    Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These
    rate trends can differ from our own and are subject to change at any time.

     

    Sincerely,
    Fred Kreger
    American Family Funding
    Certified Mortgage Consultant
    NLMS # 1850 / 214640 BRE# 01215943 / 01371184
    (661) 505-4311
    Fred.Kreger@affloans.com
    28368 Constellation Road
    Suite 398
    Santa Clarita, CA
    91355

    www.fredkreger.com

     

    ©2017 American Pacific Mortgage Corporation. All information contained herein is for informational purposes only and, while every effort has been made to insure accuracy, no guarantee is expressed or implied. Any programs shown
    do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products
    may not be available in all states and restrictions apply. Licensed by the Department of Business Oversight under the CRMLA.

     

    Read more
  • Lots of Fed action in this week’s Markets in a Minute!

     

    For the Week Ending November 3, 2017
     

    Please enjoy this quick update on what happened this week in the housing and financial markets.

     

     

    The Fed announced at this week’s meeting that there would be no policy rate hike this month. They did however signal a December hike is very likely.
    Markets have been rallying on the probable nomination of Jerome Powell as the next Fed Chair. Powell is expected to continue the trend of current Fed policies.
    The tax reform proposals issued by the House GOP have sparked a stock rally. A proposed cut to corporate taxes is expected to fuel the economy.

     

    Home prices hit a new all-time high in August, according to Case-Shiller. National home prices rose 6.1% annually, better than the 5.8% economists expected.
    Construction spending increased 2.0% year-over-year in September. Month-over-month spending fell for non-residential construction and was unchanged for residential
    construction.
    Despite tight inventory and rising home prices, the homeownership rate rose in the 3rd quarter. The 63.9% rate is the highest level since 2014.

    My sister bet me $100 that I couldn’t build a car out of spaghetti. You should’ve seen the look on her face as I drove pasta.

     

    Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These
    rate trends can differ from our own and are subject to change at any time.

    Sincerely,

    Fred Kreger
    American Family Funding
    Certified Mortgage Consultant
    NLMS # 1850 / 214640 BRE# 01215943 / 01371184
    (661) 505-4311
    Fred.Kreger@affloans.com
    28368 Constellation Road
    Suite 398
    Santa Clarita, CA
    91355

    www.fredkreger.com

    ©2017 American Pacific Mortgage Corporation. All information contained herein is for informational purposes only and, while every effort has been made to insure accuracy, no guarantee is expressed or implied. Any programs shown
    do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products
    may not be available in all states and restrictions apply. Licensed by the Department of Business Oversight under the CRMLA.

     

    Read more
  • Here’s this week’s Markets in a Minute!

     

    For the Week Ending October 20, 2017

    Please enjoy this quick update on what happened this week in the housing and financial markets.

    Housing Market Index: 

    In a nice turnaround, home builders are once again very bullish on the housing market.  In the latest data, which is released by The National Association of Home Builders from their member survey, the index jumped four points all the way back up to 68.  The strength in the index is optimism of future sales along with continuing growth of current sales.  Traffic continues to be lower than builders would like, however the only component that seems to be missing is first time buyers.  Existing home owners and previous owners make up the bulk of the traffic and purchases of new construction.

     

    Mortgage Rates and Applications: 

    Mortgage rates remained essentially flat for the week ending October 13th, however applications for purchases and refinances increased.  Purchase application rose a seasonally adjusted 4.0 percent.  Refinances went up by 3.0 percent.  Purchase applications continue to make up more than 50% of all loan activity, and remain higher from the same time last year by 9.0 percent.

     

    Housing Starts: 

    The latest news for new housing is mixed.  Permits for single-family construction rose 2.4 percent to an annualized rate of 819,000.  Permit activity for this market segment is up 9.3 percent from the same time last year.  Single family activity is the major component in which the strength of housing is judged.  This is translating into more available inventory which will likely continue to support housing growth in the coming months.

    The weakness in the latest report is permits for multi-family units.  Here we see that permits have declined by 16.1 percent to a rate of 396,000.  This is a whopping 24.0 percent below activity at the same time last year.

     

    Industrial Production: 

    Industrial production was essentially flat for the month of September.  With only a .3 percent growth, this continues to create uncertainty for the Fed in deciding what action to take on interest rates in the coming months.

    One of the things that creates questions about this latest report is that the private reports by Empire State and ISM show significant manufacturing growth.

    Next week’s potential market moving reports are:

    • Wednesday October 25th – MBA Mortgage Applications, FHFA HPI, New Home Sales
    • Thursday October 26th – First Time Jobless Claims, Pending Home Sales
    • Friday October 27th – GDP

    As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends.  I welcome the opportunity to serve you in any way I possibly can.

     

    Recently released economic data shows the economy is growing, but inflation is still not a problem. Rising inflation pressures mortgage rates to move higher.
    The Fed is expected to leave policy rates unchanged at this month’s meeting but raise them at December’s meeting, despite lack of inflation. 
    Unemployment benefit claims fell to a 44-year low last week. This points to a rebound in job growth after a hurricane-related decline in September.

     

    Builder confidence in the housing market rose to a 5-month high in October. However, builders still face increased material costs and labor shortages.
    Housing starts were at a 1-year low in September, due to hurricanes disrupting construction. The storms are also blamed for a decline in building permits.
    Housing market fundamentals, however, remain solid. Mortgage applications for home purchases were up 4% week-over-week, despite the holiday week.

    My first job was being a diesel fitter at a pantyhose factory. As they came off the line, I would hold them up and say, “Yeah, deez-el
    fit her.”

     

    Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These
    rate trends can differ from our own and are subject to change at any time.

     

    Sincerely,
    Fred Kreger
    American Family Funding
    Certified Mortgage Consultant
    NLMS # 1850 / 214640 BRE# 01215943 / 01371184
    (661) 505-4311
    Fred.Kreger@affloans.com
    28368 Constellation Road
    Suite 398
    Santa Clarita, CA
    91355

    www.fredkreger.com

     

    ©2017 American Pacific Mortgage Corporation. All information contained herein is for informational purposes only and, while every effort has been made to insure accuracy, no guarantee is expressed or implied. Any programs shown
    do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products
    may not be available in all states and restrictions apply. Licensed by the Department of Business Oversight under the CRMLA.

     

     

     

    Read more
  • What to Do if Your Home was Burned or Destroyed in the California Wildfires

    Read more
  • Ongoing with a Thriving NAMB

    As I am thinking back to my last year as NAMB’s president, it is not a goodbye for me to inspire and mentor.  This is one true pleasure and duties that I have taken on that have filled me personally with great JOY! I don’t want this last article of mine as President to be a farewell or seeing me set off to the sunset of our organization nor service.  Just the contrary.  It gives me the unique opportunity as other past presidents and NAMB leaders to rally inspire future leaders of NAMB and State Associations.

    As I wrote two months ago, I asked the question of why we lead.  We all have our motivations whether it is true commitment to service or the true pleasure it has to lead.   Regardless, we have so many leaders that we need to nurture and inspire.

    This year has been incredible. I have personally grown as a person and thus made and connected with so many of YOU around the country.  I won’t hesitate to say that this year had its challenges.  But that is why we have so many great leaders that lead your association every day.  I am so honored to have our board of directors, committee chairs, and our paid staff.  Without any one of them, we would not have kept our association on course and thriving.  Yes thriving…we have gone beyond surviving.  It is amazing how we were able to go around the country and bring NAMB to the country.  Have one of the best Legislative Conference in terms of attendance in most recent years and content.  We have some awesome leaders that truly give of themselves.

    I was looking back at some of my writings over the last couple of years, and I found an excerpt on leadership that I wanted to emphasize for my article as NAMB’s President:

    A leader steps up in times of crisis, and is able to think and act creatively in difficult situations.

    Unlike management, leadership cannot be taught, although it may be learned and enhanced through coaching or mentoring. 

    Remember, a key difference between Managers and Leaders is Managers have subordinates, Leaders have followers

    Just because you have a title to manager does not necessarily makes you a good and effective leaders.

    Management is doing things right!

    Leadership is doing the right things!

    You as a leader must model the way and inspire to follow the vision. And above all encourage the heart. Pay attention to what is happening in the hearts of others (what are others passionate about/care about). Show people you care and they will follow.

    “A leader takes people where they want to go.  A great leader takes people where they do not necessarily want to go, but ought to be.” – Rosalynn Carter, former First Lady

    I have have had so many great mentors within the past 15 years of service to associations and will absolute make sure I pay it forward.  With that said, I am asking all state and national leaders to do the same.  As a state or national president, it cannot be a race to the finish line to become and past-(fill in the blank).  We have all accumulated so much wisdom and we need to pass this on to the next generation of leaders.   Just read NAMB’s mission and most of our State Association’s mission statements; it is to advocate and educate.  What better way for us as our going heads, but to do just that.

    And I cannot without fail without leaving you with the excerpt from Theodore Roosevelt’s speech “The Man in the Arena”… The credit belongs to the man who is actually in the arena… who spends himself in a worthy cause…so that his place shall never be with those cold and timid souls who neither know victory nor defeat.

     

    Thank you and Namaste’

    Fred Kreger, CMC

     

    Fred Kreger is the Vice President of Enterprise Retail Production at American Pacific Mortgage.  He is currently the President for NAMB, the Association of Mortgage Professionals and Past President for the California Association of Mortgage Professionals (CAMP) and He can be contacted at fred.kreger@apmortgage.com or (661) 400-8905.

    Read more
Load More

Subscribe for Blog Updates

Want to receive the latest posts from this blog delivered fresh and piping hot to your email inbox?

Recent Posts

Archives